FRB/FTC Issue Final Rule on Dodd-Frank Act Changes to Risk-Based Pricing, Adverse Action Notices

The Federal Reserve Board and the Federal Trade Commission (FTC) issued their final rules implementing the new credit score disclosure requirements under Dodd-Frank, specifically relating to adverse actions and risk-based pricing notices under FCRA/Regulation V and ECOA/Regulation B.


Model forms are also provided.

Copies of the Final Rules are available at:

Regulation V:

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110706a1.pdf


Regulation B:

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110706a2.pdf


Under section 311 of FACTA, if a credit score is used in setting material terms of credit or in taking adverse action, creditors must disclose credit scores and related information to consumers in notices. Section 1100F of the Dodd-Frank Act changed the content required for risk-based pricing notices. Accordingly, the final rules amend Regulation V to revise the content requirements for risk-based pricing notices, and to add related model forms that reflect the new credit score disclosure requirements.

The final rules also amend certain model notices in Regulation B, which combine the adverse action notice requirements for Regulation B and the FCRA, to reflect the new credit score disclosure requirements

The rules under Regulations V and B are effective 30 days after the date of publication in the Federal Register, which is expected shortly.